The U.S. economy has proven to be more resilient in the first half of 2023 than many expected, as strength in the labor market has helped support consumption. But how much momentum does that labor market have? This week’s chart looks to quantify labor market momentum in one number by analyzing seven key indicators: private payrolls, average hourly earnings, the US Composite PMI Employment Index, the Conference Board Labor Differential Index, initial jobless claims, job openings and the unemployment rate. While the labor market remains a bright spot despite higher interest rates, it seems that this part of the economy is beginning to come off the boil.
The labor market is still tight by historical standards but hiring is beginning to cool. What does that mean to your investment portfolios? It’s important to remain well diversified for continuing market volatility. Need help? Reach out to schedule a time with us to review your portfolio.
